GLENDALE, Calif.-The "House Full of Savings" mortgage loan promotion at Los Angeles FCU had a goal of generating $8-million in home loans-and it delivered, with $11.5 million, or 44% over the target.
Marty Goodman, VP of marketing for the $698-million credit union, said the offer of a fixed rate at 4.625% for a 10-year term was not a "special" rate designed for the promotion.
"We emphasized the fact we always have low-rate loans that are lower than other institutions," he explained. "We call this a 'Reminder-type' promotion. We tell members there is no need to shop around, because they can always get good rates with us."
The House Full of Savings promotion was in place from July 1 to Sept. 30, 2009. Asked how LAFCU was able to book $11.5 million in mortgages during what by most accounts is a depressed housing market in Greater Los Angeles, Goodman told Credit Union Journal.
"In Southern California there still is demand for housing, and with prices at low levels there is a lot of demand. Also, several lenders have gone out of business. Those factors, combined with our low rates, led to these results. We are very happy to surpass our goal."
Goodman said LAFCU will do another real estate "Reminder" promotion in the same July-to-September timeframe later this year, and it does several vehicle loan promotions throughout the year.
"We pre-screen qualified members, and we work with dealers to offer lower prices on specific vehicles," he said. "In April, we will send a certificate to members saying they are pre-approved for a loan amount, and if they go to a designated dealer they will get a special price. This is something we have been doing for many years and it has been very successful. The dealers agree not to try to take the financing, and that has worked well over the years, also."
